continue to expand their profits, even as the
with
.
Operating profits rose 3.8 per cent to $200 billion in the third quarter, according to data released Monday by Statistics Canada. That’s the
in two years and follows a seasonally adjusted contraction of 2.4 per cent in the second quarter.
In the financial sector, earnings before interest and taxes rose six per cent to $96 billion, driven higher by lower provisions for credit losses and increased non-interest income in banking, the agency said.
Non-financial industries also expanded their operating profits 1.9 per cent between July and September, and increases were recorded in 25 of 39 subcategories. Profits rose in 10 of 14 of the country’s manufacturing industries.
The data show Canada’s companies holding up well overall despite the ongoing pressures of
and an elevated unemployment rate.
Major tariffs remain in place on steel, aluminum, autos and lumber products, and the central bank expects meagre economic growth in the second half of 2025 as business investment and exports languish.
At the same time, many of Canada’s goods exports to the U.S. are exempt from duties provided they’re covered by the
between the U.S., Canada and Mexico, leaving the country with a relatively low effective tariff rate.
“Tariffs are having a brutal but narrow hit,” said Fred Demers, head strategist of multi-asset solutions with BMO Global Asset Management.
“Firms are defending strong profit margins and investors should remain comfortable,” he said.
—With assistance from Mario Baker Ramirez.